Earlier this week, the International Monetary Fund (IMF), in its Global Economic Outlook Report lowered South Africa’s growth forecast to 0.8 percent in 2020 from a previous 1.1 percent. The IMF has cited the country’s electricity supply constraints, the slow pace of the implementation of structural reforms and a lack of policy certainty as impediments to growth for South Africa.
The Globe spoke to Inkunzi Wealth CEO Economist Owen Nkomo on the IMF’s forecast.
South Africa has seen poor economic growth over the past few years which has hampered job creation in a country that has unemployment sitting around 29 percent.
The graph below tracks what has been the country’s growth from 2015
Unemployment figures have been stubborn with no real let up.
The graph below tracks unemployment stats from 2016 to 2019
On the back of the IMF’s announcement, SABC’s Liabo Setho caught up with Reserve Bank Governor Lesetja Kganyago on the sidelines of the World Economic Forum (WEF) currently under way in Davos, Switzerland.
The Reserve Bank Governor elaborates on the Bank’s Monetary Policy Committee’s stance.